G7 to embargo Russian diamonds

The G7 ban on Russian diamond imports will be announced at the end of the month, Reuters reported.

The G7 (UK, US, Germany, Japan, France, Canada and Italy) sanctions are expected to be announced next week after a lengthy internal debate. They will also be accompanied by a 12th round of EU sanctions, which are likely to focus on Russian diamonds. "We now need the final approval of the G7 before it becomes a legal document at the European level," the source told Reuters .

Canada's global affairs spokesperson said the country and other G7 members are working with governments and diamond industry representatives on proposals to address traceability and enforcement. France's foreign ministry said "discussions are being held at a technical level between G7 members and Belgium, in conjunction with diamond businesses."

Rough diamonds are processed at a factory in Moscow April 30, 2021. Photo: Reuters

Last week, the G7 also held a technical meeting to discuss several proposals put forward by India, Belgium and businesses. Belgium has previously tried to block Western efforts to embargo Russian diamonds, warning that its city of Antwerp, through which 90% of the world ’s gems pass, would risk losing business to Dubai if the ban was implemented.

Now, under a Belgian proposal, the G7 could implement a diamond tracking system similar to the SWIFT international money transfer system between banks. This mechanism is said to prevent diamonds originating from Russia from entering.

Until now, imports of Russian rough diamonds have been banned by the United States, Britain, Canada and New Zealand. However, Washington allows the purchase of gems mined in Russia but processed in other countries. Meanwhile, Russia is shifting its diamond sales to alternative markets including China, India, the UAE, Armenia and Belarus.

Earlier this month, some international media reported that the G7 had moved to restrict imports of Russian diamonds of one carat or more that were processed in India. However, the group added that it had no objection to traders buying rough diamonds from Russia, polishing them and selling them to any other market.

According to statistics from the diamond market monitoring organization Kimberley Process, Russia's rough diamond output in 2022 reached 41.9 million carats, worth $3.5 billion, up 7% in volume and 34% in value, respectively. However, the country's diamond exports fell to 36.7 million carats, down 24%.

Phien An ( according to Reuters, RT )

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